2 Common Decision-Making Challenges Every Business Leader Will Face

One of the hardest lessons new managers must learn is that successful leaders don’t make correct decisions 100 percent of the time. A certain amount of risk and failure is an expected part of leadership, because most of the problems of mid-level managers and above are ambiguous. The key is being able to deal with the risk of making the wrong decision, which is a big part of dealing with ambiguity. Business environments and markets change so quickly, it’s almost impossible to wait until you have all the information to make a decision.Fortunately, dealing with ambiguity is a skill that can be learned like any other. When you’re comfortable dealing with ambiguity, you’ll find ways to decide and act without having the total picture., You’ll also be able to shift gears comfortably and won’t be uncomfortable when handling risk and uncertainty. Finally, you’ll learn to recognize that many times there isn’t a “right” decision, but simply a “best” decision among many.Being able to do so is vital when facing two common decision-making challenges as a manager: Dealing with ethical dilemmas and managing so-called “competing rights” — situations in which there could be more than one correct decision. Here’s what you need to know.

Ethical Dilemmas

Ethical dilemmas are common for business leaders. Ethical dilemmas don’t have to be huge — they can be as seemingly minor as finding out a valued employee is spending some company time on personal matters.To deal with ethical dilemmas, it’s important to familiarize yourself with your company’s ethics:

• Who is your company? What role does it play as a business partner and an employer? Who is it as a corporate citizen?
• How should your company act? Obviously, it should follow the laws. But what is its mission and what are its values? Does it have a code of conduct, policies and procedures you can follow in times of ambiguity?

Competing Right Answers

Situations that involve“right” answers that seem to compete with each other s come up all the time for managers. You may be asked to lay off one of several employees, and have to pick one on your own. You may face a decision that affects other departments in different ways and that may have different repercussions for yours.To manage competing right answers, follow these steps:Define the issue by identifying the key factors:

• Facts, such as who is involved, what needs to happen, the timeline for your decision, and so on.
• Implications, such as legal, social, financial and others.
• Stakeholders — the people who will be affected by your decision.

Then, research and consider secondary factors:

• Pertinent laws and regulations that may affect your decision. For example, in a layoff situation, have you followed the proper procedure so far? What would the next steps be?
• Company mission, vision, standards of conduct, policies and procedures that may influence your decision.
• Which option provides the greatest benefit for the largest number of stakeholders. This doesn’t necessarily mean it’s the choice you should pick, but it can help you find clarity in your decision.

Finally, look at your options.

• Can the conflict be eliminated? If so, determine whether that is the correct choice. If not,determine which of the competing rights is “more” right.
• Don’t be afraid to check in with mentors or your own manager. They may have insight you do not. Keep in mind that the decision you’re making may set precedent for future decisions.
• Remember that some decisions may require escalation to higher authority figures. Critical issues involving safety or ethics may require others to be involved, and you may be working with a short timeline.

Part of being a manager means making the hard decisions others don’t want to or can’t. As you face tough questions in your position, being comfortable with ambiguity and knowing you’ve done all the work you can to find the right answer will help you make decisions more confidently as time goes on.Do your company’s managers need to how to make decisions more effectively? Contact us to learn about our leadership development and coaching offerings.Success Labs is a leadership development and management consulting firm in Baton Rouge, Louisiana. For more than 25 years, our expert team of consultants has worked with hundreds of companies to explore their business potential and improve their company and cultural performance. Contact us to get proactive about your people strategy.